Catalyzing Indian Women’s Economic Empowerment
by Charity Troyer Moore, Rohini Pande and Simone Schaner
In 2013, our team of researchers affiliated with Inclusion Economics at Yale University and the Inclusion Economics India Centre (formerly known as EPoD India) began a set of studies to understand Indian women’s economic and social challenges, ranging from limited job opportunities in rural areas to low bank account ownership and financial inclusion, and to restrictive social norms. There were many concerns: Globally, India ranked in the bottom 10 percent of all countries on the basis of gender gaps in economic participation and opportunity.1 And despite consistent growth in GDP per capita, women’s labor force participation has been declining for over 10 years (see figure).
A decade later, there is much to celebrate: the gender gap in bank account ownership, which was 18 percentage points in 2011, has closed, as over 282 million women opened accounts under the world's largest account-opening initiative.2 Virtually every woman has a digital identity, and many use their own phone – but the use of higher-value functions such as digital financial services lags. Self-help groups,3 which the government initially supported to give women access to small loans, have rapidly expanded their reach and scope over the past decade, now providing a platform for women's broader socioeconomic engagement, with over 90 million women participating. Although informal power structures, especially social norms, still hinder women’s economic activity, their importance in perpetuating gender inequalities is now widely acknowledged.
Yet, significant gender gaps persist, including in labor force participation; in digital inclusion, where Indian women are still 40 percent less likely than men to access mobile internet;4 and in business ownership and leadership.
Our research over the past decade has focused on formal and informal power structures that inform women’s economic opportunity and social empowerment, as well as economic, community, and home-based constraints that perpetuate inequality. From Bihar to Chhattisgarh to Madhya Pradesh to Odisha, we’ve collaborated closely with public and private sector stakeholders and citizens from diverse societal backgrounds both men and women. We have analyzed secondary data to highlight emerging trends, worked with policymakers to ensure easy access to administrative data, and collaborated with state and central government partners to conduct process evaluations and large-scale field experiments. We have also ensured that we follow our study populations over longer time periods to track how program impacts influence, and are influenced by, local dynamics.
Our insights are informed by gender-sensitive diagnostics that combine quantitative data with deep-dive qualitative approaches to understand women’s unique experiences and the demand- and supply-side features that affect women’s labor market activity, digital gender gaps, and access to safety net transfers. We conduct rigorous analysis using “at-scale” randomized controlled trials and quasi-experimental analysis to understand what works to support women and use theory and qualitative insights to understand “the why” behind it. Crucially, we undertake this research in the context of years-long research-policy engagements, working directly with state and private sector counterparts at multiple levels to understand what questions are relevant to decision makers, and to ensure research informs responses to those questions. Our work with the central, state, district and lower levels of government in rural development is an example of this form of collaboration.
What have we learned through this work, and what critical questions must we answer going ahead given what we know about future challenges for women in India and other LMICs?
While our research focuses on specific policy levers to help women, it also highlights common building blocks needed for a more gender-equitable future. These include gender-inclusive infrastructure and investing in women’s capabilities, empowering women as change agents, and challenging entrenched power structures. Our research has shown that when policy takes this focus, and is deeply informed by the local context and conducted in the context of long-term research policy engagements, it can transform women’s opportunities, allowing them to flourish and thrive.